Breaking the Blockchain: The Security Implications of Distributed Ledgers

Bitcoin — and by extension its blockchain — has captivated the financial industry. On paper, a private version of the virtual currency’s distributed ledger technology (DLT) could be a common-sense replacement for an array of traditional networks used to exchange value. The blockchain’s speed and transparency make the technology behind the world’s most popular virtual currency an enticing proposition for financial services companies. But known and unknown security risks pose impediments to mass-scale adoption of private blockchains.